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HomeMy WebLinkAbout10/04/2005, C6 - FLEET ADDITION REQUEST FOR SKIP AND DRAG TRACTOR counat j agenda Repot `N CITY OF SAN LUIS OBISPO FROM: Jay Walter,Public Works Director Prepared By: Dave Smith, Administrative Servic s Manager Gary Keavney, Streets Maintenance Supervisor SUBJECT: FLEET ADDITION REQUEST FOR SKIP AND DRAG TRACTOR CAO RECOMMENDATIONS: 1. Approve a Skip and Drag Tractor as a fleet addition. 2. Approve the transfer of$25,000 from the Street Reconstruction and Resurfacing program to fund this purchase. I Authorize the CAO to approve final sole source purchase of used equipment. DISCUSSION Background. The City completes a certain amount of road maintenance annually. There are two types of maintenance: road recoating and road replacement. The latter work typically involves a 4" to 6" grinding excavation in which a new layer of asphalt is added. This work has been contracted out routinely, but because of the latest budget reductions, a good portion_ of the work will now be performed in-house, at least for the next two years. As part of the 2005-07 Financial Plan and in anticipation of increasing in-house street repairs, Council approved a fleet addition of an asphalt grinder (a.k.a. Zipper) that allows half the grinding spoils to be recycled as road base with asphalt applied over the top. The Zipper allows City street maintenance crews to perform road grinding and repaving work equivalent to that previously performed by contract services. Using City maintenance crews and this new preparation method saves the City both labor and materials costs, as was confirmed last year when a.Zipper was rented by Street maintenance crews and the method tested. Old Method With the old road repair method, a 4" to 6" excavation is made and all the excavated spoils are hauled away to a landfill. New base is added and compacted, then new hot asphalt isapplied in a 3" maximum layer thickness, requiring two separate applications of asphalt and sufficient cooling time between layers. New Method With the new road repair method, City crews use the Zipper to grind out a 4" to 6" excavation.. Using this method, half the depth of the excavation remains filled with recycled grinding spoils and is compacted. One full layer of asphalt (3") is then applied with no cooling time or additional layers needed. Staff commonly refers to this technique as using a 50/50 mix. The Purchase of Used Skip &Drag Tractor Page 2 50150 mix method has resulted in reduced disposal costs, lower asphalt material costs and the elimination of contracting costs. All this combines to reduce the cost per mile of road repaired. Need for a Skin and Drag Tractor In.the final step of the 50/50 road paving process, the street maintenance crew currently uses a back hoe bucket for spreading the grindings and hand raking to distribute new asphalt. This is a laborious, time consuming task that a Skip and Drag Tractor can streamline. It does so by spreading new asphalt to a precise material depth over a Zipper prepared road surface, laying down new asphalt in one pass as it conforms to the contour of the road. The use of a rented Skip and Drag Tractor in combination with the Zipper demonstrates that the process reduces the overall street repair task time by one third to one half. With City staff now performing this work rather than contracting it out, and with reduced funding, it is critical to make the process as efficient and cost effective as possible. Therefore, staff recommends purchasing a Skip and Drag Tractor. New Verses Used Skin and Drag Tractor Purchase A new Skip and Drag Tractor is available for purchase on the California Multiple Award Schedule (C.M.A.S.) through the State of California for approximately $55,000. Although the City's Fleet Management Policy states "the City shall generally purchase new vehicles and equipment when replacement is needed", fleet maintenance staff has determined that a used, reconditioned Skip and Drag Tractor would be appropriate. Preliminary research indicates that a good, used piece of equipment can be obtained for$25,000 or under. The Fleet Policy also establishes 17 years as the replacement schedule for construction equipment. The annual depreciation cost of a$55,000 purchase over 17 years is$3235 per year. Using the same rate on a$25,000 purchase yields a comparable payback of less than 8 years. E ui menfBrand/Model I Acquisition I Re lacment Depreciation Rate I Term I Amount Case 580K (new) $ 55,000 17 yeas $ (3,235) 17 $ (54,995) Used E ui ment $ 25,000 8 ears $ 3,125 8 1 $ 25,000 To rent a Skip and Drag Tractor costs $300 per day. Using the daily rental rate relative to a used Skip and Drag Tractor purchased for$25,000 realizes payback in 83 clays of operation. For a new Skip and Drag Tractor purchased for$55,000,payback occurs after 183 days of operation. Sole Sourcing Because of limited quantities and unpredictable availability of used equipment, the Fleet Supervisor must be selective and timely in evaluating and purchasing a used Skip and Drag Tractor. Also, with the varying degrees of reconditioning and use history involved, a purchase can not be based on low price alone. Therefore, staff recommends having sole source purchase authority for procuring a used Skip and Drag Tractor, so that no time is lost once a tractor has been identified. Purchase of Used Skip &Drag Tractor Page 3 FISCAL IMPACT Budget Remaining Balance in Street R &R Main Account $ 554,200 Skip and Drag balance(not to exceed) $ (25;000) Remaining Balance _ $_. 529,200 The use of $25,000 from the Street Reconstruction and Resurfacing program will have minimal impact on the budget. Staff will still be able to do necessarystreet repairs using contractors and City streets crew throughout this next year. ALTERNATIVES Continue to use existing equipment and hand labor to apply new asphalt. ATTACHMENTS Photos of Used CASE 480FLI,Skip and Drag Tractor J:\USERS\EVERYONE\_Counci1 Agenda Reports\2005 agenda reports\Engineering and Maintenance Services (Lynch)\Streets Maintenance (Keawey)\CAR-Skip and Dragl.doc c� 3 Attachment 1 Photos of Used CASE 480FLL Skip and Drag Tractor NJ Tr 1 A r" t 4F{t 1 I a r � Y 1 CCS � Califon Integrated.Waste Managem Board •;;;;. Rosario Mann, Chair ■aasaa w. -■■■■ 1001 I Street• Sacramento,California 95814• (916)341-6000 °- °a Mailing Address: P.O. Box 4025, Sacramento, CA 95812-4025 Alan C. Lloyd,Ph.D. Arnold Schwarleriegger Ph.D. www.ciwmb.ca.gov for Governor Environmental Protection RED FILE September 26, 2005 MEETING AGENDA RECEIVED DATE ITEM #� .' City of San Luis Obispo C� -3EP 2 9100^ Christine.Mulholland, Councilmember 990 Palm St I SLO CITY San Luis Obispo, CA 93401 _ Subject: $7 Million Coming for Rubber Paving Grants Dear Christine Mulholland: The California Integrated Waste.Management Board will soon be offering nearly$7 million in grant funds to cities and counties that use Rubberized Asphalt Concrete(RAC) in paving projects. Funds will be available to help offset any costs associated with using RAC in lieu of traditional asphalt. We will issue a Notice of Funding Available (NOFA), which will describe project and funding eligibility by early October. The application and grant process will be simplified to encourage greater participation by jurisdictions across the state. RAC is a proven product with outstanding qualities that make it superior in most situations to traditional road surfaces. Consider these benefits to using RAC in your resurfacing projects: RAC is cost effective. A two-inch-thick rubberized asphalt.concrete resurfacing can save as much as $22,000 per lane mile over conventional asphalt. RAC is highly skid-resistant and resists shoving and rutting: • RAC greatly reduces road noise, giving it the nickname, Quiet Ride. RAC is environmentally friendly. A two-inch resurfacing project uses over 2,000 waste .tires per lane mile. RAC provides excellent long-lasting color contrast for striping and marking. RAC provides a long-lasting, durable pavement that resists reflective cracking. We strongly encourage you to look at all your planned road projects and consider using RAC wherever appropriate. In addition to the grant funds, expert help is available from the Board should you need it, Please contact Nate Gauff; of my staff at(916) 341-6686 or nQauff0_ciwmb.ca.aov if you want-mor questions.. 4" COUNCIL .5 CDD D!, ah_ C=,C �=R�' DIR Sincerely, Y I ;7�ACAO =IRE CHIEF a V i itATTORNEY r PW DIR ='CLERK ORIG z' POLICE CHF r i Q. = DEPT -'E4DS �P_C DIR C Rosario Mann [r' —TPS��,��/�'--- Z� UTIL DI" Chair